2018 -- S 2974

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LC005896

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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S E N A T E   R E S O L U T I O N

RESPECTFULLY REQUESTING THAT THE OFFICE OF THE POSTSECONDARY

COMMISSIONER FORM A WORK GROUP TO CONDUCT A THOROUGH REVIEW INTO

HOW RHODE ISLAND CAN PROTECT STUDENT LOAN BORROWERS

     

     Introduced By: Senators Gallo, Pearson, Sheehan, Satchell, and Metts

     Date Introduced: June 14, 2018

     Referred To: Senate Education

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     WHEREAS, Student loan debt in the United States totals approximately $1.3 trillion; and

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     WHEREAS, The Federal Family Education Loan (FFEL) Program is a bank-based

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federal loan program that is held by the Department of Education or guaranty agencies; and

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     WHEREAS, Nearly 7 million people with $162 billion in FFEL loans are held by

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guaranty agencies and almost half of the outstanding defaulted student debt is from the FFEL

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program; and

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     WHEREAS, According to a report from the Consumer Federation of America, over one

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million borrowers defaulted on their federal student loans in 2016, an increase of about fourteen

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percent from 2015; and

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     WHEREAS, The United States Department of Education has removed protections for

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student loan borrowers, including barring debt collectors from charging high fees, up to sixteen

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percent of the principal and accrued interest, on past-due loans; and

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     WHEREAS, Rhode Island should proactively find state solutions for student loan

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borrowers in Rhode Island because of the rollback of protections that such borrowers were

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afforded by the federal government; now, therefore be it

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     RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations

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hereby respectfully requests that the Office of the Postsecondary Commissioner form a work

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group to conduct a thorough review into how Rhode Island can protect student loan borrowers

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and to make recommendations on or before January 15, 2019, to the President of the Rhode

 

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Island Senate and to the Speaker of the Rhode Island House of Representatives regarding student

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loan protections. Such recommendations should consider the best agency to provide those

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protections, and necessary statutory and regulatory amendments. The work group should include

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the Treasurer’s Office, the Office of the Attorney General, Rhode Island Student Loan Authority,

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private student loan providers, members of the Rhode Island General Assembly, current and

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former students with student loan debt, and other key stakeholders; and be it further

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     RESOLVED, That the Secretary of State be and hereby is authorized and directed to

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transmit duly certified copies of this resolution to Peter F. Kilmartin, Attorney General; Seth

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Magaziner, General Treasurer; Dr. Brenda Dann Messier, Commissioner of Postsecondary

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Education; William Foulkes, Chair of the Council on Postsecondary Education; and Charles E.

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Kelley, Executive Director of the Rhode Island Student Loan Authority.

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LC005896

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